GeoResources, Inc. today announced the closing of the mergers (the Merger) with Southern Bay Oil & Gas L.P. and Chandler Energy, LLC, after receiving all required shareholder approvals.

The combined entity has assets in the Gulf Coast, Rocky Mountains and Williston Basin. In connection with the Merger, Southern Bay made capital contributions of approximately $19.4 million, with $ 5.0 million contributed in January 2007, and the remainder made at closing. Pro-forma proved reserves are currently estimated at approximately 8.2 million barrels of oil equivalent (BOE), 61% oil and 74% proved developed.

The combined entity has current daily production of approximately 1,500 BOE. In the transactions (1) Southern Bay partners received 8,263,000 shares of GeoResources' common stock, (2) Chandler members received 1,931,000 shares and (3) certain working interest owners in a Chandler-operated oil and gas project in eastern Colorado received 496,000 shares. Total outstanding common shares increased to approximately 14,563,000 shares.